GOLD edged higher on Friday (Feb 28) but was set to snap an eight-week winning streak on a stronger US dollar, while investors turned their focus to a key US inflation data for cues into the Federal Reserve’s monetary policy trajectory.
Spot gold was up 0.1 per cent at US$2,879.09 an ounce, as at 0030 GMT.
Bullion is down nearly 2 per cent for the week, its biggest weekly drop since Nov 25, 2024, and on track for its first weekly decline after eight consecutive gains.
US gold futures eased 0.2 per cent to US$2,889.60.
The US dollar index was set for a weekly gain of 0.6 per cent so far, making greenback-priced gold more expensive for foreign buyers.
Trump said on Thursday that his proposed 25 per cent tariffs on Mexican and Canadian goods will take effect on Mar 4 along with an extra 10 per cent duty on Chinese imports because deadly drugs are still pouring into the US from those countries.
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Philadelphia Federal Reserve Bank president Patrick Harker on Thursday expressed support for continuing to hold short-term US borrowing costs in their current range of 4.25 to 4.5.
Gold is seen as a hedge against political risks and inflation, but higher interest rates dampen the non-yielding asset’s appeal.
Investors now await the personal consumption expenditures (PCE) data, the Fed’s preferred inflation measure, due later in the day, for further clues on the US economic outlook.
Spot silver was steady at US$31.25 an ounce, platinum fell 0.1 per cent to US$947.55 and palladium eased 0.4 per cent to US$915.63. REUTERS
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